Money is fuel for living
Make sure you keep the main thing the main thing...
Money is fuel for living.
It’s not the only thing that propels our lives forward, but I think you’d agree that things can turn pretty difficult without money.
Money buys us the things we need, want, and, if planned for properly, dream about.
Not just things… experiences too!
I’d like to explore the idea that money is “life fuel” and use this perspective to help you think of money decisions like you might consider the fuel we put in your car.
Does The Cost Of Fuel Drive Your Decisions?
Let’s say you and your kids (or grandkids) are planning to drive to Orlando, FL, to spend a few days at Disney World for summer vacation.
Does the price of gas impact your decision?
If you read the news from years past, you can see that higher prices at the pump result in many families staying closer to home, deferring their vacation or canceling it altogether while hoping gas will be more affordable next summer.
Is your financial plan any different?
What if the market drops effectively making your money “more expensive” to spend (because your investment dollars are currently worth less on paper)?
It might make sense to consider adjustments to your spending or the timing of your expenses.
Let’s say we’re still talking about your planned trip to Disney World, and gas prices are at or below recent averages.
Maybe the cost of fuel for your road trip isn’t a factor in your decision-making process.
But what if the markets are down and your investment portfolio has dropped 15% in recent weeks or months?
Does this impact your decision to take the trip to Disney?
Maybe.
Maybe not.
It All About Priorities
If going on a road trip to Disney with your family is important enough, I think most of us will still take the trip despite the hypothetical market drop.
But what if you have more important priorities than a single summer’s vacation?
What if, by spending money on the Disney vacation, the expense results in having to increase your portfolio’s investment risk to keep your plan on track?
Unlikely, but worth considering…
Or what if you have to retire a year later in exchange for the trip to Disney?
What if it impacts your ability to educate your children in the manner you’d like?
Or reduces any financial legacy you’d like to leave behind?
Let me present this idea to you in another way:
What if gas is $8 per gallon?
Well, that would likely impact some of your non-critical financial decisions, like taking a road trip to Florida for vacation.
But what if you find out a relative or close friend who lives in the Orlando area is critically ill and they want you to come visit and help out?
I suspect many of us would do everything we could to make that trip, regardless of the $8 gas.
What’s Important To You?
This same concept applies to all our financial decisions.
If it’s important enough, you’ll likely find ways to make the money work, whether it’s for a vacation with your kids or making sure you can quit work at your target retirement age.
However, if it’s not as important to you, maybe you’re willing to make some adjustments or trade-offs.
Maybe you’re willing to work another year or two if it means you can reduce your investment risk today.
Or perhaps you’re willing to increase your current savings if it results in an earlier retirement age or less investment risk (or both).
And maybe you’d be willing to make some trade-offs that will allow you to reduce your current level of savings resulting in more current income to fund Disney vacations or other things that are important to you.
In fact, you might prioritize a family trip to Disney above all else.
I’ve heard it said you only get 18 summers with your kids before they’re off living their own lives…
It all depends on the things and experiences that are important to you and your priorities among them.
Bringing It All Together
This is exactly what I do in my work with women and their families.
Here are the four primary steps to my Wealthcare For Women process:
Start with your “why”
Focus on what you can control
Tune out the noise
Live your life
If you dig a little deeper into my process, what I do is help women figure out and quantify what’s most important in their lives, educate them about the trade-offs among each of their unique goals and dreams, and then monitor and adjust their financial plan and money alongside them to maintain comfort and confidence in their plan all while keeping the focus on their life and what’s most important to them.
Another important benefit of this approach to wealth management for women is that it strikes and maintains a nice balance between living your best life today while still being financially prepared for an unknowable and uncertain future.
This is how we reduce financial anxiety and foster greater comfort and confidence.
Money is the fuel that can make what’s most important to you a reality.
What are you waiting for?
Let’s start working on your Wealthcare plan today.
Thanks for reading…
I hope you and your family enjoy a wonderful Thanksgiving!
Until next Wednesday,
Russ